Credit score minimums getting higher.

The interest rate your lender will give you depends on your credit score. This is a number from 300 to 850 (in most cases) that you get from one of four popular credit rating agencies. It is based on payment history (about one third), total amount you owe (roughly another third), credit history –the older your accounts the better– (15%), type of credit on record (10%), number of recently opened accounts (about 5%), and recent inquiries (about 5%).

It used to be that a score of 720 was usually enough to get you the best interest rates, but now, one expert who tracks these things, says that a score in the high 700’s is often required. As your score goes lower, your interest rate goes up.

Especially on a mortgage, you can save a lot of money by increasing your score. Start by finding out what it is by odrering free reports at www.annualcreditreport.com

For tipson how to improve your credit score, click here.

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